Transportation

of natural gas in
compressed rather
than liquid form can
offer potential cost and
operational benefits in
specific applications.
Novel ship and gas containment designs have been
developed for marine transportation projects, particularly short-to-
medium haul shipments and the exploitation of deepwater fields. Although a
CNG carrier cannot handle the same volume of gas as an LNG carrier of comparable
dimensions, eliminating the need for costly liquefaction and re-gasification processing
can more than offset the scale economies on appropriate trade routes.

CAUSES
A relatively long distance between the source and the market, or difficulties associated
with accessing a remote, deepwater offshore field may make a pipeline cost prohibitive
for otherwise promising gas projects. When the capacity cannot justify the high start-up
costs of a new LNG trade, CNG may offer a viable transportation alternative. Several
projects worldwide have been identified as potential applications for CNG technology.

Industry studies have compared the cost per mmbtu of an LNG project with that of the
CNG alternative. The LNG project elements include liquefaction, storage, transportation
and re-gasification/terminal facilities. CNG handling includes compression, cooling,
transportation and terminal facilities. These studies indicate the viability of CNG
transport when the one-way distance is 2,500 miles or less.

One of the most significant advantages of a CNG project is that the transported gas
can be discharged at terminals located offshore. Gas can also be loaded directly from
an offshore production facility. This increases safety and decreases security concerns.

Other advantages of CNG projects include: low threshold volume for start-up compared
to LNG or GTL; lower market entry cost thresholds; environmental and economic
benefits from substantially less gas wasted in the process compared to LNG and
especially GTL; low technology
qualifies more builders,
stimulating competitive pricing;
potential use of converted single
skin oil carriers; and much greater
flexibility for expansion.
TECHNICAL DEVELOPMENTS
CNG vessels require specially
designed pressure vessel-type
containment systems. These are
capable of storing the gas at
pressures ranging from 1,500 to
3,000 psig and at temperatures that
may range from ambient to minus 20
degrees Fahrenheit. These temperatures
permit the use of commercially available
pipeline material for the tank construction.

Modular type containment systems are proposed. These may

consist of either horizontal or vertical bottles ranging in size from 18 to 36
inches in diameter. An alternative concept uses 6 inch diameter coils. These concepts
provide for a wide range of cargo capacities from 200 to 2,000 mmscf, within the same
basic design concept. By utilizing a risk-based engineering approach, the highest
possible safe maximum allowable working pressure can be determined. Since there is
no gas boil-off as occurs on an LNG carrier, conventional marine propulsion plants are
suitable.

ABS REQUIREMENTS
Recognizing the varying nature of the proposed CNG vessel concepts, ABS has
developed Guidance Notes for Building and Classing Ships Carrying Compressed Natural
Gas. These provide a needed set of safety criteria for those engaged in the development
of concepts and designs for CNG projects. The Guidance Notes facilitate industry
development, establish an overall philosophy or approach, provide a framework of
reference material and identify the methodologies followed by designers in similar
projects.

ABS is presently working with shipping companies, shipyards and CNG designers to
progress the design of various CNG vessels from the concept stage to detailed design
with the view to granting an approval in principle.

The Guidance Notes bring together the various applicable ABS Rules and relevant
industry codes and standards to give the designer a clear, integrated reference.
Examples are the reference to API standards that deal with high pressure gas
containment and handling, and delineation of gas-dangerous locations.

Areas covered within the Guidance Notes include the containment system, loading
and discharge systems, piping, electrical and safety systems and vessel arrangements.
Particular emphasis is placed on the loads that must be considered in the design of
the containment system, the required analyses, and means that may be considered to
justify alternative allowable stress intensities.

TX 02/04 4026 3000